Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1, Relating to an Amendment to the Generic Listing Standards for Trust Shares, 6637-6639 [E7-2248]

Download as PDF Federal Register / Vol. 72, No. 28 / Monday, February 12, 2007 / Notices communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of NASD. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NASD–2007–009 and should be submitted on or before March 5, 2007. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act that the proposed rule change (SR–NASD–2007– 009) is approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–2303 Filed 2–9–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55211; File No. SR–Phlx– 2006–79] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1, Relating to an Amendment to the Generic Listing Standards for Trust Shares sroberts on PROD1PC70 with NOTICES January 31, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 29, 2006, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which items have been substantially prepared by the Exchange. On January 29, 2007, the Exchange filed CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 19:52 Feb 09, 2007 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Phlx Rule 803—Criteria for Listing— Tier 1, regarding generic listing standards for Trust Shares. The text of the proposed Phlx Rule is set forth below, with new text italicized and deleted text [bracketed]. Rule 803 Criteria for Listing—Tier I * * * * * (a)–(h) No Change. (i) Trust Shares (1)–(10) No Change. (11) The Exchange may approve a series of Trust Shares for trading, whether by listing or pursuant to unlisted trading privileges, pursuant to Rule 19b–4(e) under the Securities Exchange Act of 1934 provided each of the following criteria is satisfied: (a) Eligibility Criteria for Index Components. Upon the initial listing of a series of Trust Shares on the Exchange, the component stocks of an index or portfolio underlying such series of Trust Shares shall meet the following criteria as of the date of the initial deposit of cash and securities into the trust: (i)–(ii) No Change. (iii) The most heavily weighted component stock cannot exceed [25]30% of the weight of the index or portfolio, and the five most heavily weighted component stocks cannot exceed 65% of the weight of the index or portfolio; (iv)–(v) No Change. (b)–(h) No Change. (j)–(m) No Change. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change, and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the Jkt 211001 places specified in Item III below. The Exchange has prepared summaries, substantially set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to conform Phlx’s generic listing standards for Trust Shares, specifically Rule 803(i)(11)(a)(iii), to the standards of other exchanges. Phlx Rule 803 provides generic listing standards for Trust Shares to permit listing and trading of these securities pursuant to Rule 19b–4(e) under the Act.4 Rule 19b– 4(e) provides that the listing and trading of a new derivative securities product by a self-regulatory organization shall not be deemed a proposed rule change, pursuant to paragraph (c)(1) of Rule 19b–4,5 if the Commission has approved, pursuant to Section 19(b) of the Act,6 the self-regulatory organization’s trading rules, procedures and listing standards for the product class that would include the new derivative securities product, and the self-regulatory organization has a surveillance program for the product class.7 These generic listing standards are intended to ensure that stocks with substantial market capitalization and trading volume account for a substantial portion of the weight of an index or portfolio. Phlx Rule 803 provides that, upon the initial listing of a series of Trust Shares under Rule 19b–4(e), component stocks that in the aggregate account for at least 90 percent of the weight of the index or portfolio must have a minimum market value of at least $75 million. In addition, the component stocks in the index must have a minimum monthly trading volume during each of the last six months of at least 250,000 shares for stocks representing at least 90 percent of the weight of the index or portfolio. Currently, Rule 803(i)(11)(a)(iii) provides that the most heavily weighted component stock in an underlying index cannot exceed 25 percent of the weight of the index or portfolio, and the five most heavily weighted component stocks cannot exceed 65 percent of the weight of the index or portfolio. The 4 17 CFR 240.19b–4(e). CFR 240.19b–4(c)(1). 6 15 U.S.C. 78s(b). 7 See Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR 70952 (December 22, 1998). 5 17 3 In Amendment No. 1, the Exchange supplemented the rationale for its request for accelerated approval and made technical changes to the proposed rule text. 17 17 VerDate Aug<31>2005 Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons, and is granting accelerated approval to the proposed rule change as modified by Amendment No. 1. PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 6637 E:\FR\FM\12FEN1.SGM 12FEN1 6638 Federal Register / Vol. 72, No. 28 / Monday, February 12, 2007 / Notices Exchange proposes to increase from 25 percent to 30 percent the permissible weight of the most heavily weighted component stock in an underlying index. The Exchange is not amending the existing requirement that the five most heavily weighted stocks cannot exceed 65 percent of the weight of the index or portfolio. According to the Exchange, this change will provide additional flexibility to unit investment trusts to be listed pursuant to Rule 19b– 4(e) in structuring their products and will help reduce possible concerns associated with a single stock exceeding the 25 percent threshold immediately prior to initial listing and trading due to a spike in the price of the most heavily weighted index stock. The Exchange notes that, notwithstanding this change, unit investment trusts (including Trust Shares) are subject to Internal Revenue Code Subchapter M requirements applicable to regulated investment companies. In order to maintain regulated investment company status, these entities would be required to rebalance their portfolios quarterly to avoid any one stock exceeding a 25 percent weighting in the trust’s portfolio. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act 8 in general, and furthers the objectives of Section 6(b)(5) of the Act 9 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. sroberts on PROD1PC70 with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange states that written comments were neither solicited nor received. 8 15 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Aug<31>2005 19:52 Feb 09, 2007 Jkt 211001 the rules and regulations thereunder applicable to a national securities Interested persons are invited to exchange.10 In particular, the submit written data, views, and Commission finds that the proposed arguments concerning the foregoing, rule change is consistent with the including whether the proposed rule requirements of Section 6(b)(5) of the change is consistent with the Act. Exchange Act,11 which requires, among Comments may be submitted by any of other things, that the Exchange’s rules the following methods: be designed to promote just and Electronic Comments equitable principles of trade, to remove • Use the Commission’s Internet impediments and to perfect the comment form (http://www.sec.gov/ mechanism of a free and open market rules/sro.shtml); or and a national market system, and in • Send an e-mail to rulegeneral, to protect investors and the comments@sec.gov. Please include File public interest. The Commission No. SR–Phlx–2006–79 on the subject believes that the proposed rule change line. is reasonably designed to provide additional flexibility in the listing of Paper Comments Trust Shares under the Exchange’s • Send paper comments in triplicate generic listing standards. Further, the to Nancy M. Morris, Secretary, Commission believes that the proposed Securities and Exchange Commission, rule change will serve to protect 100 F Street, NE., Washington, DC investors and the public interest by 20549–1090. maintaining the size and liquidity All submissions should refer to File requirements applicable to the securities Number SR–Phlx–2006–79. This file underlying the relevant index or number should be included on the subject line if e-mail is used. To help the portfolio. Commission process and review your The Commission finds good cause for comments more efficiently, please use approving the proposed rule change only one method. The Commission will prior to the 30th day after the date of post all comments on the Commission’s publication of the notice of filing thereof Internet Web site (http://www.sec.gov/ in the Federal Register. The rules/sro.shtml). Copies of the Commission has previously approved submission, all subsequent similar proposals by the American Stock amendments, all written statements Exchange LLC (‘‘Amex’’), Chicago Board with respect to the proposed rule Options Exchange, Incorporated change that are filed with the (‘‘CBOE’’) and New York Stock Commission, and all written Exchange LLC (‘‘NYSE’’).12 Therefore, communications relating to the the proposed rule change does not raise proposed rule change between the any new issues. Commission and any person, other than those that may be withheld from the V. Conclusion public in accordance with the It is therefore ordered, pursuant to provisions of 5 U.S.C. 552, will be Section 19(b)(2) of the Act 13 that the available for inspection and copying in proposed rule change (SR–Phlx–2006– the Commission’s Public Reference Room. Copies of such filing also will be 79), as modified by Amendment No. 1, is approved on an accelerated basis. available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does 10 In approving this proposed rule change, the not edit personal identifying Commission notes that it has considered the information from submissions. You proposed rule’s impact on efficiency, competition, should submit only information that and capital formation. See U.S.C. 78c(f). you wish to make available publicly. All 11 15 U.S.C. 78f(b)(5). submissions should refer to File 12 See Securities Exchange Act Release Nos. Number SR–Phlx–2006–79 and should 44532 (July 10, 2001), 66 FR 37078 (July 16, 2001) (SR–Amex–2001–25) (approving an increase for be submitted on or before March 5, indexes underlying Portfolio Depositary Receipts 2007. III. Solicitation of Comments IV. Commission Findings and Order Granting Accelerated Approval of a Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of the Exchange Act and PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 and Index Fund Shares listed on the Amex); 44908 (October 4, 2001), 66 FR 52161 (October 12, 2001) (SR–CBOE–2001–38) (approving an increase for indexes underlying Index Portfolio Receipts and Index Portfolio Shares listed on the CBOE); 53934 (June 1, 2006), 71 FR 33326 (June 8, 2006) (SR– NYSE–2006–39) (approving an increase for indexes underlying Investment Company Units). 13 15 U.S.C. 78s(b)(2). E:\FR\FM\12FEN1.SGM 12FEN1 Federal Register / Vol. 72, No. 28 / Monday, February 12, 2007 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–2248 Filed 2–9–07; 8:45 am] SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 10797 and # 10798] Florida Disaster # FL–00019 Small Business Administration. Notice. AGENCY: SUMMARY: This is a Notice of the Presidential declaration of a major disaster for the State of Florida (FEMA—1679—DR), dated 02/03/2007. Incident: Severe Storms and Tornadoes. Incident Period: 02/01/2007 through 02/02/2007. DATES: Effective Date: 02/03/2007. Physical Loan Application Deadline Date: 04/04/2007. Economic Injury (EIDL) Loan Application Deadline Date: 11/05/2007. ADDRESSES: Submit completed loan applications to: Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President’s major disaster declaration on 02/03/2007, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties (Physical Damage and Economic Injury Loans): Lake; Seminole; Sumter; Volusia Contiguous Counties (Economic Injury Loans Only): Florida: Brevard; Citrus; Flagler; Hernando; Marion; Orange; Osceola; Pasco; Polk; Putnam. The Interest Rates are: sroberts on PROD1PC70 with NOTICES Percent For Physical Damage Homeowners With Credit Available Elsewhere .......... Homeowners Without Credit Available Elsewhere .................. 14 17 5.750 2.875 CFR 200.30–3(a)(12). VerDate Aug<31>2005 19:52 Feb 09, 2007 Jkt 211001 Avenue Research Library, 101 Auburn Avenue, NE., Atlanta, GA 30303. The Businesses With Credit Availpurpose of the meeting is to receive able Elsewhere .................. 8.000 comments and testimony from small Other (Including Non-Profit business owners, small government Organizations) With Credit entities, and small non-profit Available Elsewhere .......... 5.250 organizations concerning regulatory Businesses And Non-Profit enforcement and compliance actions Organizations Without Credit Available Elsewhere 4.000 taken by Federal agencies. Anyone wishing to attend or to make For Economic Injury a presentation must contact James Businesses & Small Agricultural Cooperatives Without Hightower, in writing or by fax, in order Credit Available Elsewhere 4.000 to be placed on the agenda. James Hightower, Public Information Officer, The number assigned to this disaster SBA, Georgia District Office, 233 for physical damage is 10797C and for Peachtree Street, NE., Suite 1900, economic injury is 107980. Atlanta, GA 30303, phone (404) 331(Catalog of Federal Domestic Assistance 0100, Ext. 215 and fax (202) 481-2313, Numbers 59002 and 59008) e-mail: James.hightower@sba.gov. For more information, see our Web Herbert L. Mitchell, site at http://www.sba.gov/ombudsman. Associate Administrator for Disaster Percent BILLING CODE 8010–01–P ACTION: 6639 Assistance. [FR Doc. E7–2296 Filed 2–9–07; 8:45 am] BILLING CODE 8025–01–P Matthew Teague, Committee Management Officer. [FR Doc. E7–2228 Filed 2–9–07; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION Region 1—Maine District Advisory Council; Public Meeting DEPARTMENT OF STATE The U.S. Small Business Administration Maine District Advisory Council, located in the geographical area of Augusta, Maine will hold a public meeting on Wednesday, February 21, 2007, starting at 10 a.m. The meeting will be held at Mainely Trusses, Inc., 7 Truss Lane, Fairfield, ME. The purpose of the meeting is to discuss such matters as may be presented by members, staff of the U.S. Small Business Administration, or others present. For further information, write or call Mary McAleney, District Director, U.S. Small Business Administration, Maine District Office, 68 Sewall Street, Room 512, Augusta, Maine 04330, telephone (207) 622–8386; fax (207) 622–8277. U.S. Advisory Panel to the U.S. Section of the North Pacific Anadromous Fish Commission; (Notice of Renewal) Matthew Teague, Committee Management Officer. [FR Doc. E7–2226 Filed 2–9–07; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION Public Federal Regulatory Enforcement Fairness Hearing; Region IV Regulatory Fairness Board The U.S. Small Business Administration (SBA) Region IV Regulatory Fairness Board and the SBA Office of the National Ombudsman will hold a public hearing on Thursday, February 22, 2007, at 10 a.m. The meeting will take place at the Auburn PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 [Public Notice 5666] The Department of State has renewed the Charter of the U.S. Advisory Panel to the U.S. Section of the North Pacific Anadromous Fish Commission (NPAFC) for another two years, effective February 1, 2007. The NPAFC was established by the Convention for the Conservation of Anadromous Stocks in the North Pacific Ocean, signed on February 12, 1992, by Canada, Japan, the Russian Federation, and the United States, and entered into force on February 16, 1993. The U.S. Advisory Panel will continue to work with the U.S. Section to promote the conservation of anadromous fish stocks, particularly salmon, throughout their migratory range in the North Pacific Ocean, as well as ecologically related species. The U.S. Section of the Commission is composed of three Commissioners who are appointed by the President. Each Commissioner is appointed for a term not to exceed 4 years, but is eligible for reappointment. The Secretary of State, in consultation with the Secretary of Commerce, may designate alternate Commissioners. The Advisory Panel to the U.S. Section is composed of 14 members, 11 of whom are appointed by the Secretary, in consultation with the Secretary of Commerce. Advisory Panel members E:\FR\FM\12FEN1.SGM 12FEN1

Agencies

[Federal Register Volume 72, Number 28 (Monday, February 12, 2007)]
[Notices]
[Pages 6637-6639]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2248]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55211; File No. SR-Phlx-2006-79]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change, as Modified by Amendment No. 1, Relating to an Amendment 
to the Generic Listing Standards for Trust Shares

 January 31, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby 
given that on November 29, 2006, the Philadelphia Stock Exchange, Inc. 
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I and II below, which items have been substantially prepared by 
the Exchange. On January 29, 2007, the Exchange filed Amendment No. 1 
to the proposed rule change.\3\ The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons, and is granting accelerated approval to the proposed rule 
change as modified by Amendment No. 1.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange supplemented the rationale 
for its request for accelerated approval and made technical changes 
to the proposed rule text.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Phlx Rule 803--Criteria for 
Listing--Tier 1, regarding generic listing standards for Trust Shares. 
The text of the proposed Phlx Rule is set forth below, with new text 
italicized and deleted text [bracketed].
Rule 803 Criteria for Listing--Tier I
* * * * *
    (a)-(h) No Change.
    (i) Trust Shares
    (1)-(10) No Change.
    (11) The Exchange may approve a series of Trust Shares for trading, 
whether by listing or pursuant to unlisted trading privileges, pursuant 
to Rule 19b-4(e) under the Securities Exchange Act of 1934 provided 
each of the following criteria is satisfied:
    (a) Eligibility Criteria for Index Components. Upon the initial 
listing of a series of Trust Shares on the Exchange, the component 
stocks of an index or portfolio underlying such series of Trust Shares 
shall meet the following criteria as of the date of the initial deposit 
of cash and securities into the trust:
    (i)-(ii) No Change.
    (iii) The most heavily weighted component stock cannot exceed 
[25]30% of the weight of the index or portfolio, and the five most 
heavily weighted component stocks cannot exceed 65% of the weight of 
the index or portfolio;
    (iv)-(v) No Change.
    (b)-(h) No Change.
    (j)-(m) No Change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change, and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item III below. The Exchange has prepared summaries, substantially set 
forth in Sections A, B, and C below, of the most significant aspects of 
such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to conform Phlx's 
generic listing standards for Trust Shares, specifically Rule 
803(i)(11)(a)(iii), to the standards of other exchanges. Phlx Rule 803 
provides generic listing standards for Trust Shares to permit listing 
and trading of these securities pursuant to Rule 19b-4(e) under the 
Act.\4\ Rule 19b-4(e) provides that the listing and trading of a new 
derivative securities product by a self-regulatory organization shall 
not be deemed a proposed rule change, pursuant to paragraph (c)(1) of 
Rule 19b-4,\5\ if the Commission has approved, pursuant to Section 
19(b) of the Act,\6\ the self-regulatory organization's trading rules, 
procedures and listing standards for the product class that would 
include the new derivative securities product, and the self-regulatory 
organization has a surveillance program for the product class.\7\
---------------------------------------------------------------------------

    \4\ 17 CFR 240.19b-4(e).
    \5\ 17 CFR 240.19b-4(c)(1).
    \6\ 15 U.S.C. 78s(b).
    \7\ See Securities Exchange Act Release No. 40761 (December 8, 
1998), 63 FR 70952 (December 22, 1998).
---------------------------------------------------------------------------

    These generic listing standards are intended to ensure that stocks 
with substantial market capitalization and trading volume account for a 
substantial portion of the weight of an index or portfolio. Phlx Rule 
803 provides that, upon the initial listing of a series of Trust Shares 
under Rule 19b-4(e), component stocks that in the aggregate account for 
at least 90 percent of the weight of the index or portfolio must have a 
minimum market value of at least $75 million. In addition, the 
component stocks in the index must have a minimum monthly trading 
volume during each of the last six months of at least 250,000 shares 
for stocks representing at least 90 percent of the weight of the index 
or portfolio. Currently, Rule 803(i)(11)(a)(iii) provides that the most 
heavily weighted component stock in an underlying index cannot exceed 
25 percent of the weight of the index or portfolio, and the five most 
heavily weighted component stocks cannot exceed 65 percent of the 
weight of the index or portfolio. The

[[Page 6638]]

Exchange proposes to increase from 25 percent to 30 percent the 
permissible weight of the most heavily weighted component stock in an 
underlying index. The Exchange is not amending the existing requirement 
that the five most heavily weighted stocks cannot exceed 65 percent of 
the weight of the index or portfolio. According to the Exchange, this 
change will provide additional flexibility to unit investment trusts to 
be listed pursuant to Rule 19b-4(e) in structuring their products and 
will help reduce possible concerns associated with a single stock 
exceeding the 25 percent threshold immediately prior to initial listing 
and trading due to a spike in the price of the most heavily weighted 
index stock. The Exchange notes that, notwithstanding this change, unit 
investment trusts (including Trust Shares) are subject to Internal 
Revenue Code Subchapter M requirements applicable to regulated 
investment companies. In order to maintain regulated investment company 
status, these entities would be required to rebalance their portfolios 
quarterly to avoid any one stock exceeding a 25 percent weighting in 
the trust's portfolio.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \9\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange states that written comments were neither solicited 
nor received.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-Phlx-2006-79 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

    All submissions should refer to File Number SR-Phlx-2006-79. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-Phlx-2006-79 and should be submitted on or before March 
5, 2007.

IV. Commission Findings and Order Granting Accelerated Approval of a 
Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Exchange Act and 
the rules and regulations thereunder applicable to a national 
securities exchange.\10\ In particular, the Commission finds that the 
proposed rule change is consistent with the requirements of Section 
6(b)(5) of the Exchange Act,\11\ which requires, among other things, 
that the Exchange's rules be designed to promote just and equitable 
principles of trade, to remove impediments and to perfect the mechanism 
of a free and open market and a national market system, and in general, 
to protect investors and the public interest. The Commission believes 
that the proposed rule change is reasonably designed to provide 
additional flexibility in the listing of Trust Shares under the 
Exchange's generic listing standards. Further, the Commission believes 
that the proposed rule change will serve to protect investors and the 
public interest by maintaining the size and liquidity requirements 
applicable to the securities underlying the relevant index or 
portfolio.
---------------------------------------------------------------------------

    \10\ In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See U.S.C. 78c(f).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds good cause for approving the proposed rule 
change prior to the 30th day after the date of publication of the 
notice of filing thereof in the Federal Register. The Commission has 
previously approved similar proposals by the American Stock Exchange 
LLC (``Amex''), Chicago Board Options Exchange, Incorporated (``CBOE'') 
and New York Stock Exchange LLC (``NYSE'').\12\ Therefore, the proposed 
rule change does not raise any new issues.
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release Nos. 44532 (July 10, 
2001), 66 FR 37078 (July 16, 2001) (SR-Amex-2001-25) (approving an 
increase for indexes underlying Portfolio Depositary Receipts and 
Index Fund Shares listed on the Amex); 44908 (October 4, 2001), 66 
FR 52161 (October 12, 2001) (SR-CBOE-2001-38) (approving an increase 
for indexes underlying Index Portfolio Receipts and Index Portfolio 
Shares listed on the CBOE); 53934 (June 1, 2006), 71 FR 33326 (June 
8, 2006) (SR-NYSE-2006-39) (approving an increase for indexes 
underlying Investment Company Units).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\13\ that the proposed rule change (SR-Phlx-2006-79), as modified by 
Amendment No. 1, is approved on an accelerated basis.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(2).


[[Page 6639]]


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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-2248 Filed 2-9-07; 8:45 am]
BILLING CODE 8010-01-P